russian vodka production has fallen due to sanctions
Producers of vodka are trying to reorient supplies to the markets of the East, but these areas will be able to compensate for the lost volumes of Western exports only until 2024
The ban on the supply of russian vodka to the EU, the US and Canada has hit the production of this alcoholic beverage in russia. In January-March 2023, the country's vodka production fell by 8% to 15.8 million decaliters.
Source. Kommersant writes about this with reference to data from market participants.
Thus, the Beluga Group (Beluga, Belenkaya, Myagkov) saw its production fall by 11% (to 1.96 million dal), the Alcohol Siberian Group (ASG, Belaya Berezka, Pyatye Ozero, Husky) – by 16% (to 1.33 million dal), and the Rust Group (russian Standard, Green Mark, Parliament) – by 27% (to 1.23 dal).
The impact of Western sanctions on production volumes was previously noted by Rust, while Beluga Group sold the rights to produce Beluga vodka outside russia to Noblewod Group, headquartered in Montenegro, amid export problems.
In the first quarter, russian vodka supplies abroad fell by 76.75% to $6.33 million in cash, Vedomosti reported, citing data from the Federal Customs Service. In terms of pure alcohol, exports fell by 77% to 752,027 liters.
Before the war in Ukraine began, the EU, the US and Canada accounted for up to a third of russia's total vodka exports, with expensive vodka sold abroad.
The EU banned alcohol supplies from russia as part of the sixth package of sanctions last July, and the United States and Canada imposed a similar embargo almost immediately after russia's invasion of Ukraine.
After that, major vodka producers in russia began to reorient their supplies to the CIS, Middle East, India and Asia-Pacific markets. However, these destinations will only be able to replace the lost exports to the West by 2024.
Background. As a reminder, a protest against Pernod Ricard, which supplies alcohol to russia, was held in Britain.
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